V-Vehicle reapplies for federal loan to build Louisiana car plant

Mario Villafuerte / The Times PicayuneThe old Guide Corp. headlamp plant in Monroe was being prepared by the V-Vehicle Car company to become the assembly plant for a new green car.

The V-Vehicle start-up company that wants to build an auto plant in Monroe has reapplied for a federal Department of Energy loan program in an effort to secure the financing essential to the project.

The company's plan to build a 1,400-employee plant making a fuel-efficient hatchback skidded off the tracks in March when the energy agency denied an initial application for $320 million in government-backed loans, the largest piece of the financing plan. The founding chief executive soon resigned.

The energy department invited the company to submit a new application. Company officials said last month they would present more information about the operational profitability of the project. They have not said whether the new application is for the same amount.

A spokeswoman for the energy department said V-Vehicle reapplied on May 19 for a loan through the Advanced Technology Vehicle Manufacturing program, a multi-billion dollar initiative to support alternative-power and low-fuel consumption vehicles. The application currently is under review, she said.

Raymond Lane, a partner in an investment firm with a large interest in V-Vehicle, took over management temporarily, launched a search for a new chief executive and submitted the new application with the hope of putting the plan back in action. The company has been riding on about $85 million in private backing.

Meanwhile, the state's incentive package agreement expired but could be revived if the company succeeds in getting the money. The state's mega-projects development fund still contains the $67 million slated for site improvements and other incentives.

Last month the company showed Louisiana officials and some members of the media a drivable production prototype of the car, which has a simple design to coincide with plans for a streamlined manufacturing process. No photos were allowed.

The four-door, front-wheel drive compact is made of a soft-white colored composite that would not be painted or decorated with chrome. All of the cars would be produced with this same color while allowing customers to order personalized designs, symbols or pictures that could be laid over the body like a decal.

The simple design would allow a manufacturing process without the need for a paint facility, which for most car plants is an expensive component requiring significant environmental controls. Factory auto painting is a time-consuming portion of a car manufacturing line.

The company has not said how much the car would cost but reports have said it is expected to compete at a price level near $10,000.